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Imagine if we could control the weather. Weatherman forecasts a hurricane, so weather control does what they can to get rid of it. Economics is like that. Econ
by qppo 6y ago
Imagine if we could control the weather. Weatherman forecasts a hurricane, so weather control does what they can to get rid of it.
Economics is like that. Economists predict horrible downturn. Economic policy makers do what they can to avoid or lessen its impact.
For example, economists predicted that Boeing (among others) was going to need a massive bailout to survive. The Fed purchased a ton of corporate bonds with printed money to juice the bond market and allow Boeing and others to refinance their debt. Do we blame the weatherman for being wrong when steps were taken to change the forecast?